3 - market types - New Hampshire Farm Bureau Federation

3 - MARKET TYPES
You must adhere to all state and federal laws and regulations for all of these types of businesses;
see sheet “4 – Marketing Strategies & Regulations” for more details.
Retail
There are many different ways to sell your products directly to consumers. Some popular types in
NH are: farm stands, farmers’ markets, CSA’s, and pick-your-own operations. The most attractive
part of direct marketing is that you receive the full share of the consumer dollar and have more
control over the price you receive for your products. But there are also other costs you will incur
with direct marketing, such as the valuable use of your time.
Farmers’ Markets
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Join local markets – NH has an abundance of town farmers’ markets
Inventory what you sell at each market and adjust your products accordingly
Evaluate demographics of the market goers and adjust your marketing accordingly
Make sure you adhere to farmers’ market rules – each one is different
You must enjoy interacting with your customers to be successful
Markets require lots of time – harvesting, packaging, transporting, setting up, selling, etc.
Minimal initial investment
Ability to support your local community and educate about agriculture
¾¾ NHDAMF Farmers’ Market Directory
http://agriculture.nh.gov/publications-forms/documents/farmers-market-directory.pdf
¾¾ NH Farmers’ Market Association
http://www.nhfma.net/
¾¾ The Art and Science of Farmers’ Market Displays
http://articles.extension.org/pages/10986/the-art-and-science-of-farmers-market-display
Farm Stands & On-Farm Sales
• Self-serve stands, Open-air stand, Multi-department stands, Seasonal, Year-round, Pickyour-own, Agritourism, etc.
• Many consumers learn of your location by word-of-mouth and just by driving by
• Stands that are not self-serve require a staff, advertising, prepping and storage facilities,
parking lots, and a lot of time
• These operations will also require to implement more risk management strategies and
have liability insurance
• Stands are normally open for much more time in a day than a booth at a farmers’ market
• Clean, attractive appearance, that is safe at your stand and/or farm
• Privacy on your farm may be limited with this type of market
• You (and your staff) must enjoy interacting with customers – “people person”
• Supporting your local community, providing farm fresh products, and educating about ag
NEW FARMER TOOLKIT FOR NEW HAMPSHIRE FARMERS by New Hampshire Farm Bureau Federation
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¾¾ Farm Stands 101 – Penn State Extension
http://extension.psu.edu/business/farm/marketing/promoting-and-marketing-yourbusiness/farm-stands-101
¾¾ Developing a Road-Side Market – Penn State Extension
http://extension.psu.edu/business/ag-alternatives/marketing/developing-a-roadsidefarm-market
¾¾ Agritourism Planning for Farmers – NHDAMF
http://agriculture.nh.gov/divisions/agricultural-development/experience.htm
Community Supported Agriculture (CSA)
• CSA operations vary with every farm
• CSA customers pay for their “share” at the beginning of the season – in turn, you have
money to buy seeds, fertilizer, etc.
• Typically, the farm provides a weekly share of their products – the products will vary with
what is in season
• Customers can pick up their shares at the farm, central location, or be delivered
• You know how many customers you will have for the season and can produce accordingly
• Customers will be very interested in your production methods and your farm
• Very seasonal operation for NH production
¾¾ Community Supported Agriculture (CSA) – Penn State Extension
http://extension.psu.edu/business/ag-alternatives/marketing/community-supportedagriculture-csa
¾¾ CSA Toolkit – UConn Extension
http://newfarms.extension.uconn.edu/wp-content/uploads/sites/848/2015/11/CSAGuide_FINAL_0929151.pdf
Wholesale Markets
Many options for a farm to wholesale their products, such as to: restaurants, groceries/supermarkets,
cooperatives, schools, hospitals, other farmers, buyers/brokers, food hubs, auctions, etc.
Some Wholesaling Elements:
• Wholesaling typically involves bulk sales – you may have less control over the price you
receive and probably won’t get the full value of the consumer dollar
• Typically requires a lot of delivery & trucking
• Often requires time spent on the phone with dealers or potential customers
• Know the requirements of these different markets such as packaging, size & grading
requirements; see sheet “4 - Marketing Strategies & Regulations.”
• Required certifications in the wholesale market, such as GAP certification & following the
rules of FSMA; see sheet “7 - Licenses, Registrations & Certifications.”
• No need for farm stand, parking lot, and less advertising
NEW FARMER TOOLKIT FOR NEW HAMPSHIRE FARMERS by New Hampshire Farm Bureau Federation
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¾¾ NHDAMF Agricultural Development publishes many directories/brochures that you can
list your farm in for free, such as the Farm Stand Directory or the CSA Directory.
http://agriculture.nh.gov/publications-forms/agricultural-development.htm
¾¾ To Market, To Market – Rutgers
http://anniesproject.rutgers.edu/ap_2012winter_presentations_wk3/ap2012w_wk3_
to_market_rbrum.pdf
¾¾ The Legal Guide for Direct Farm Marketing – Drake Ag Law Center
http://directmarketersforum.org/
¾¾ Farm Answers – Marketing
https://farmanswers.org/LibraryList/marketing
NEW FARMER TOOLKIT FOR NEW HAMPSHIRE FARMERS by New Hampshire Farm Bureau Federation
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4 - MARKETING STRATEGIES & REGULATIONS
Marketing is the process that companies use to get consumers interested in the items they’re
selling.
Marketing Elements:
• Product - quality, packaging, labeling, availability, development
• Promotion & Advertising – signs, flyers, social media, word-of-mouth, radio, etc.
• Branding – choose a brand and stick to it
• Pricing – see sheet “5 - Pricing Your Farm Products”
• Place (location) – of products, of store, of staff, etc.
• Specify target markets – market research, current trends, sample current customers
(demographics, geographical areas, lifestyle, occupation, etc.)
• Analyze competition
• Determine, then satisfy customer needs
• Business cards – carry them with you always
• Education – for your customers, for you
¾¾ Assessing Your Market Potential – Guide to Farming in NY
http://www.nebeginningfarmers.org/2012/04/23/23-assessing-your-market-potential/
¾¾ Marketing – Small Business Administration (SBA)
https://www.sba.gov/managing-business/running-business/marketing
Marketing Plan
A Marketing Plan is typically one part of a full business plan. Like all parts of the business plan, it
can be pared down or filled with details for a complete plan that you are taking to your lender.
¾¾ Market Plan Research & Sample Plans – Guide to Farming in NY
http://www.nebeginningfarmers.org/farmers/selling/marketing-tutorial/market-planexamples-and-data-sources/
¾¾ Crop Marketing Plan – Penn State Extension
http://extension.psu.edu/business/farm/marketing/commodity/crop-marketing-plan
¾¾ Developing a Marketing Plan for Your Farm – Oregon State Extension
http://extension.oregonstate.edu/sorec/sites/default/files/documents/MarketingPlan.
pdf
NEW FARMER TOOLKIT FOR NEW HAMPSHIRE FARMERS by New Hampshire Farm Bureau Federation
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Marketing
Marketing Regulations
Regulations:
Commodity
Apple Grading
Agency
NHDAMF Div. of
Regulatory Services
Website
Eggs
NHDAMF Div. of
Regulatory Services
http://agriculture.nh.gov/divisions/regulatoryservices/faq-eggs.htm
Homestead License
NH Dept. of Health &
Human Services
http://www.dhhs.nh.gov/dphs/fp/sanitation/h
omestead.htm
Honey
NHDAMF Div. of
Regulatory Services
http://agriculture.nh.gov/publicationsforms/documents/honey-guidelines.pdf
Laws & Rules - NH
Agriculture
NHDAMF
Maple Grading
NHDAMF Div. of
Regulatory Services
Maple Grading
NH Maple Producers
Association
http://agriculture.nh.gov/publicationsforms/documents/maple-grade-guide.pdf
http://www.nhmapleproducers.com/pure-nhmaple/pure-nh-maple-grading/
Milk Production & Dairy
Sanitation
NH Dept. of Health &
Human Services
http://www.dhhs.nh.gov/dphs/fp/dairy/index.
htm
Organic Certification
NHDAMF Div. of
Regulatory Services
http://agriculture.nh.gov/divisions/regulatoryservices/organic.htm
Plants
NHDAMF Div. of Plant
Industry
http://agriculture.nh.gov/divisions/plantindustry/nursery-plant-dealers.htm
Poultry & Rabbit
(uninspected)
NHDAMF Div. of
Regulatory Services
http://agriculture.nh.gov/divisions/regulatoryservices/rabbit-poutry-registration.htm
http://agriculture.nh.gov/publicationsforms/documents/apple-labeling.pdf
http://agriculture.nh.gov/laws-rules/index.htm
Additional Information on Regulations:
Additional
Information
Regulations:
¾¾ NHDAMF
Div. ofon
Regulatory
Services Publications – Regulation of Farm Commodities
http://agriculture.nh.gov/divisions/regulatory-services/farm-commodity-regulation.htm
 NHDAMF
Div. of Regulatory Services Publications – Regulation of Farm Commodities
http://agriculture.nh.gov/divisions/regulatory-services/farm-commodity-regulation.htm
¾¾ NHDAMF Div. of Weights & Measures – Scale Certification & Inspection
 NHDAMF
Div. of Weights & Measures – Scale Certification & Inspection
http://agriculture.nh.gov/divisions/weights-measures/index.htm
http://agriculture.nh.gov/divisions/weights-measures/index.htm
¾¾ Selling Agricultural Commodities at Farmers Markets in NH - NHDAMF
 Selling Agricultural Commodities at Farmers Markets in NH - NHDAMF
http://agriculture.nh.gov/publications-forms/documents/selling-at-farmers-markets.pdf
http://agriculture.nh.gov/publications-forms/documents/selling-at-farmers-markets.pdf
Resources for Organic Farming & Its Regulations:
General Marketing Info:
¾¾ NHDAMF Organic Certification
 Variety
of Marketing Tips and Info – Cornell Small Farms Program
http://agriculture.nh.gov/divisions/regulatory-services/organic.htm
http://smallfarms.cornell.edu/resources/marketing/
¾
¾
USDAAnswers
– Organic– Agriculture
 Farm
Marketing
http://www.usda.gov/wps/portal/usda/usdahome?contentidonly=true&contentid=orga
nic-agriculture.html
NEW FARMER TOOLKIT FOR NEW HAMPSHIRE FARMERS by New Hampshire Farm Bureau Federation
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¾¾ NOFA-NH
http://nofanh.org/
¾¾ Rodale Institute
http://rodaleinstitute.org/
¾¾ Guide for Organic Crop Producers – USDA Organic
https://www.ams.usda.gov/sites/default/files/media/GuideForOrganicCropProducers.
pdf
¾¾ Farm Answers – Organic
https://farmanswers.org/LibraryList/production?pt=Organic
General Marketing Info:
¾¾ Variety of Marketing Tips and Info – Cornell Small Farms Program
http://smallfarms.cornell.edu/resources/marketing/
¾¾ Farm Answers – Marketing
https://farmanswers.org/LibraryList/marketing
¾¾ Penn State Extension - Marketing
http://extension.psu.edu/business/start-farming/marketing
¾¾ Marketing, Business & Risk Management – ATTRA fact sheets
https://attra.ncat.org/marketing.html
NEW FARMER TOOLKIT FOR NEW HAMPSHIRE FARMERS by New Hampshire Farm Bureau Federation
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5 - PRICING YOUR FARM PRODUCTS
New farmers often struggle with how to determine the value of their farm products. Here are a
few tips and great resources to help you calculate and decide prices for your farm products.
• Price must reflect the product’s value to the customer.
• Price should be high enough to cover costs and enable the business to make a reasonable
return, but also allow for modest losses in sales and be considered fair.
• Keep in mind that not everyone’s costs and inputs are the same.
Price depends on:
• Business costs
• Customer demand
• Market trends
• Competition
How to Price Your Farm Products:
¾¾ Pricing Farm Products – Guide to Farming in NY
http://www.nebeginningfarmers.org/2012/04/24/24-pricing-farm-products/
¾¾ Product Pricing: What Do I Charge? – Penn State Extension
http://extension.psu.edu/business/farm/marketing/promoting-and-marketing-yourbusiness/product-pricing
¾¾ Pricing Your Farm Products – University of VT
http://www.uvm.edu/newfarmer/marketing/marketing_resources/Pricing_RAFFL.pdf
¾¾ Marketing Toolshed: Pricing Information – University of VT
htt p : / / w w w. u v m . e d u / n ew fa r m e r / ? Pa ge = m a r ket i n g / p r i c e / p r i c i n g _ i n d ex .
html&SM=marketing/sub-menu.html
Local Pricing:
¾¾ NHDAMF Weekly Market Bulletin – Local pricing for Wholesale Eggs, Bulk & Retail Grain
Prices, Livestock Auction prices – Note: there is an annual fee to receive this publication
http://agriculture.nh.gov/market-bulletin/
¾¾ USDA AMS Market News
https://www.ams.usda.gov/market-news
¾¾ USDA AMS Specialty Crops Terminal Markets Standard Report – See “Boston, MA” for the
Boston Terminal Markets daily prices
https://www.ams.usda.gov/market-news/fruit-and-vegetable-terminal-marketsstandard-reports
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